Ohio’s Unemployment Rate Hits Record Low for Second Month

Key Economic Insights

• U.S.: Nonfarm employment increased by 339,000 in May and the unemployment rate rose to 3.7%. The Federal Reserve kept interest rates unchanged in June and forecasted a peak rate of 5.6% this year.
• Ohio: The unemployment rate in Ohio declined to another record low of 3.6% in May, and the labor force participation rate improved to 62.1%. Ohio won Area Development’s 2022 Gold Shovel Award.

U.S. Insights

The Federal Reserve kept interest rates unchanged at their June meeting, holding rates at a target range of 5.0 - 5.25%. In the summary of economic projections, the Fed revised their forecast for 2023 Real GDP growth higher to +1.0% from +0.4% in March. The forecast for the peak federal funds rate was revised higher to 5.6% from 5.1% in March.  Total nonfarm payroll employment increased by 339,000 in May. The unemployment rate rose to 3.7% during the month, up from 3.4% in April, and the labor force participation rate was unchanged at 62.6%.  U.S job openings rose to 10.1M in April, up from 9.6M in March. Total separations decreased to 5.7M, with quits (3.8M) remaining stable and layoffs and discharges (1.6M) decreasing from the previous month.

The Consumer Price Index (CPI) rose 0.1% in May to a 4.0% annual rate, the lowest level since March 2021. Core CPI advanced 0.4% during the month to a 5.3% annual rate. The Producer Price Index (PPI) declined 0.3% in May to a 1.1% annual rate, the lowest level in nearly 2-½ years. U.S. retail sales increased 0.3% in May and have risen 1.6% over the last year. Consumer credit rose at a 5.7% annual rate in April, matching the gain seen in March.

ISM Manufacturing PMI registered 46.9 in May, down from 47.1 in April and marking the seventh consecutive month in contraction. U.S. factory orders increased 0.4% in April, the second consecutive month of growth, boosted largely by defense spending. Industrial production declined 0.2% in May following two consecutive months of increases. Capacity utilization declined to 79.6% during the month, a rate that is slightly below its long-run (1972–2022) average.  Manufacturing jobs added from reshoring + FDI totaled 101,500 in Q1 2023, according to a recent report from the Reshoring Initiative. At the current rate, new job announcements are on pace to total more than 400,000 by year-end.

The NFIB Small Business Optimism Index increased 0.4 points to 89.4 in May. 25% of owners reported that inflation was their single most important problem in operating their business, followed by labor quality at 24%. The Conference Board Consumer Confidence Index declined to 102.3 in May, down from an upwardly revised 103.7 in April. Weekly jobless claims totaled 262,000 during the week ended June 10, unchanged from the previous week’s revised level. Continuing claims rose by 20,000 to a total of 1.775M.

Ohio Employment & Economic Insights

Ohio's unemployment rate was 3.6% in May 2023, down from 3.7% in April. For the second time in two months this marks the lowest unemployment rate ever recorded since reporting started in 1976. Nonagricultural wage and salary employment increased 6,600 over the month, from a revised 5,608,000 in April to 5,614,600 in May. The labor force participation rate in Ohio was 62.1% in May, up from 61.8% in April and up from 61.8% in May 2022.

Ohio was honored with Area Development’s prestigious Gold Shovel award and two “Project of the Year” awards (Intel and Medpace) in recognition of the state’s achievements in attracting high-value-added investment projects in 2022.  The Governor’s Office of Workforce Transformation launched Ohio’s Electric Vehicle (EV) Workforce Strategy, a strategic plan developed in collaboration with industry partners.

The Ohio Department of Transportation awarded $54M to traffic safety in 30 Ohio counties and $27M from the Municipal Bridge Program to support local projects on 24 aging bridges across the state.  The EPA awarded Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup (MARC) grants totaling more than $4.6M to eight Ohio communities. $1.9M was awarded in Northeast Ohio, $1.2M in Cincinnati, $900,000 in Southeast Ohio, and $500,000 in Lima.  Governor DeWine announced more than $114M in water infrastructure grants affecting 58 counties.

11 Ohio-based companies were recognized by Forbes’ “America’s Best Employers For New Grads: 2023” including Progressive, Cincinnati Children’s, Proctor & Gamble, Cleveland Clinic, OhioHealth, Great American Insurance, Nationwide Children’s Hospital, Sherwin-Williams, The Ohio State University, Nationwide Mutual Insurance, and Cardinal Health. 24 Ohio-based companies were included in Fortune Magazine’s 2023 Fortune 500. Ohio ties #5 in the U.S. for the most HQ companies in the Fortune 500. Ohio companies in the Fortune 100 include Cardinal Health (#14), Marathon Petroleum (#16), Kroger (#24), Procter & Gamble (#51), Nationwide (#83), and Progressive (#88). Four Ohio-based companies were recognized in Deloitte’s 2023 Best Managed Companies list, including Lithko Contracting, OnPoint, Rumpke Waste & Recycling, and Standard Textile.

Juneteenth celebrations in Ohio are listed here. The JobsOhio Inclusion Grant program has provided millions of grant dollars to companies owned by underrepresented populations and seeking program applications.

Ohio Company News

• GM plans to expand Brookville DMAX operations as part of a $920M facility investment. The 1.1 million square-foot expansion will quadruple the size of the current facility.
• Capchem Technology expects to hire 60 in Lawrence County as part of a $120M investment in a new lithium-ion electrolyte production facility.
• National Logistics Services announced plans for an expansion project in Cincinnati that is expected to create 50 new jobs totaling $2.9M in new payroll.
• Plastilene Group, a major food packaging and distribution company, opened a new facility and created 58 jobs with a $48M investment in Washington Court House.
• AkzoNobel has announced a new pilot manufacturing plant in Huron.
• MedShip plans to invest $2.3M to demolish blighted properties and construct its HQ in the Preble County village of Camden’s downtown. The project is expected to create 30 jobs.
• PTTGC America intends to build a new PET plastic recycling facility in Fayette County.
• Gerber & Sons committed to invest $26.3M to redevelop an unused industrial property in Baltic. The company also plans to construct a state-of-the-art, highly automated feed mill.
• The Guernsey Power Station, a new 1,875 MW natural gas-fired power plant, has entered operation.
• Electrada raised $22M in additional funds from BlackRock to expand EV charging infrastructure.
• Spectrum and Clinton County will invest at least $18M to expand gigabit access for 3,000 locations.
• Invirsa, a Columbus-based pharmaceutical company developing an eyedrop for ocular conditions associated with DNA damage, closed on a $7.7M Series B financing round.
• American Airlines will offer a new nonstop flight to Cancun from Cincinnati/Northern Kentucky International Airport, the first international destination served by American.
• Altafiber acquired Ohio peer Bridgewired for undisclosed terms, giving the company access to a fiber network that covers Warren, Greene and Clinton counties.
• Reynolds and Reynolds, in Kettering, acquired California-based AutoVision.
• Flow Control Holdings, in Cincinnati, has acquired Pennsylvania-based Strahman Holdings.
• Stonehenge Community Impact Fund was awarded the Small Business Investment Company award

For more information, contact:

Drew Peters & Matthew Ellerbrock, JobsOhio Research

peters@jobsohio.com / ellerbrock@jobsohio.com